Oakajee Holds $1.55M as Paynes Find Auger Drilling Yields Low Gold Assays

Exploration Challenges at Paynes Find

Oakajee Corporation Limited (ASX: OKJ) has reported its quarterly activities for the period ending 31 March 2025, focusing on its ongoing exploration efforts at the Paynes Find gold project in Western Australia. The company completed auger drilling and sampling over two key target areas, Banks and Deep Well, aimed at penetrating the shallow alluvial cover that has historically hindered surface soil sampling.

Despite the strategic choice of auger drilling to reach the bedrock-alluvial interface, the results were disappointing. At the Banks south-west extension, the auger holes, spaced at 200m by 50m, failed to consistently reach the bedrock, resulting in patchy and generally low gold assay results. Similarly, the Deep Well target, a regional fold closure with promising magnetic signatures, returned universally low gold values, suggesting the auger drilling again did not sufficiently penetrate the alluvial cover.

Strategic Shift to Aircore Drilling

In light of these findings, Oakajee is now considering an Aircore drilling program, which offers deeper penetration and more reliable sampling of the weathered bedrock beneath the alluvial cover. This shift underscores the challenges of exploring covered terrains and the necessity of adapting techniques to obtain meaningful geological data. The Aircore program remains subject to permitting and contractor availability, with the company signaling its intent to proceed as soon as feasible.

Financial Position and Corporate Structure

Financially, Oakajee ended the quarter with $1.55 million in liquid assets, comprising $331,215 in cash and $1.22 million in listed shares, including significant holdings in Santa Fe Minerals Limited and Turaco Gold Limited. The company continues to manage its portfolio of Western Australian tenements, holding an 80% interest in several key leases under joint ventures and full ownership of others, maintaining operational control as the project manager.

Operating cash flows remain negative, reflecting ongoing exploration expenditure and corporate costs, with no new equity or debt financing activities reported during the quarter. Related party payments, consistent with director remuneration, amounted to $50,360.

Outlook and Market Implications

Oakajee’s exploration journey at Paynes Find illustrates the inherent uncertainties in mineral exploration, particularly in areas obscured by alluvial cover. The planned Aircore drilling represents a critical next step to validate the geological potential hinted at by magnetic surveys and soil anomalies. Success in this phase could materially enhance the project’s value proposition, while failure would necessitate reassessment of the company’s strategic direction.

Investors will be watching closely for the outcomes of the Aircore program and any subsequent updates on funding and project advancement. Oakajee’s ability to sustain its operations through this exploration phase, supported by its current liquidity and asset base, will be pivotal in navigating the next chapters of development.